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As part of its effort to “disrupt” the food industry supply chain, Santa-Monica based automation incubator Wavemaker Labs has added—and revived—a new piece of technology that promises to change the game for apple orchards.
In October, Wavemaker acquired the intellectual property behind agtech startup Abundant Robotics’ autonomous apple-picking technology. Wavemaker is now relaunching the technology under the name Abundant Robots and taking aim at a major segment of the agriculture industry—one that generates around $5 billion annually for American apple farmers, according to the U.S. Department of Agriculture.
Hayward, Calif.-based Abundant went under last year, citing difficulties “develop[ing] the market traction necessary to support its business during the pandemic.” Despite that failure, Wavemaker Labs founder and CEO Buck Jordan was convinced that the technology behind Abundant was solid, even if the startup’s execution ultimately failed.
“COVID essentially just killed their harvest season and killed the progress they needed to make in order to get the next round of financing,” Jordan told dot.LA. “[Abundant] kind of had to invent everything from scratch, and they’ve done a really great job. But there’s a lot of [technology] that’s cheaper off the shelf that can be used and swapped in.”
Abundant Robots’ automated apple-picking machine grabs an apple.Courtesy of Wavemaker Labs
Jordan, who is fond of statistics, notes that around 87 million metric tons of apples are produced globally each year—making it “far and away, in terms of tree fruit, the biggest category that there is.” He adds that harvesting labor accounts for roughly two-thirds of the cost that consumers pay for an apple at the grocery store, with farming costs only projected to grow in the coming years.
This is where Wavemaker sees the opportunity for Abundant Robots. The IP it acquired essentially constitutes a vacuum-suction apple-harvesting system that operates in tandem with AI-backed image recognition software. In other words, the robot can eye an apple tree and suck the ripe apples right off the branch.
The delicate nature of the suction technology was a key selling point for Wavemaker. “[With] apples, you’ve got to be really ginger with them,” Jordan said. “If you bruise an apple, the value of that particular apple goes down—and now it’s applesauce instead of being sold in Whole Foods.”
Abundant Robots is now looking to raise $20 million via crowdfunding to improve on its existing prototype. If it hits its goals, the next iteration of the machine should cost under $100,000 to produce and be able to pick an apple every one-to-1.5 seconds. That’s likely quicker than even the fastest human pickers, according to Jordan—and of course, the machine never gets tired.
Abundant’s technology may be good news if you’re an apple grower, but probably not if you’re an apple picker. Aviva Chomsky, a professor at Salem State University in Massachusetts who studies immigration and migrant labor in the U.S., believes that automation will likely exacerbate power imbalances between agricultural workers and their employers.
An aerial view of Abundant Robots’ apple-picking technology.Courtesy of Wavemaker Labs
“In an ideal socio-economic system, technologies could be used for the benefit of the many—but in our agricultural system, technologies are generally used for the benefit of the few and to the detriment of the many,” Chomsky told dot.LA.
While Wavemaker and others in the autonomous agriculture space are positioning their platforms as solutions to an ongoing labor shortage, labor advocates say their technologies could prove disastrous for America’s roughly 2.5 million farm workers and its rural farming communities.
“There is what I perceive to be a very insincere narrative—or perhaps more graciously, an incomplete narrative—about what’s really happening,” according to Erik Nicholson, a consultant and former national vice president of the United Farm Workers labor union. “That, to me, is about as sincere as saying Facebook is about connecting friends and family.”
Like Facebook, Nicholson thinks much of the actual value in technology like Abundant Robots’ machines will come from data collection. As tech companies are able to put more intelligent machinery on farms, they’ll be able to collect data on elements such as soil moisture, crop productivity and temperature.
About 87 million metric tons of apples are produced globally each year.Courtesy of Wavemaker Labs
How tech companies choose to leverage that data remains to be seen. They could provide farmers with insights into how to grow more crops in a more efficient and sustainable manner. Nicholson, however, expects that the trend toward automation will come at a cost to farmers.
“Whoever writes the algorithms and has access to the data has tremendous power,” he said. “Do we want to just hand that over to the VCs in Silicon Valley and say they’re going to make the determinations about what’s growing, how and when?”
Critics agree that there’s no easy solution that simultaneously keeps food prices low, saves growers from going bankrupt and pays farmworkers a living wage. Yet as automotion promises to upend the agriculture industry’s status quo, they argue that farm workers at least deserve a seat at the table as billions in investment capital pour into the industry.
Otherwise, Nicholson said he fears that “we’re going to see an ongoing extraction of wealth into the hands of investors—who largely do not live in [farming communities like] Mabton, Wash. or Delano, Calif.”
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The fast-food industry will stay afloat through increased automation to provide things customers demand like contactless pickup and low-touch food prep, as well as to combat labor shortages and increased labor costs. Back-of-house automation will become a necessity if restaurants are to survive the current market.
By replacing dangerous jobs and menial tasks with automation, fast-food companies will be able to free up workers and shift the focus back to customer service. By removing human error and improving safety and consistency, they‘ll be able to provide quality food to customers. By gaining actionable insight into operations and customer trends, these restaurants can improve and customize the consumer experience. And by optimizing to adapt to the changing footprint of restaurants and kitchens, they can shift focus to off-premise takeout and delivery, offering further flexibility and dramatically reducing overhead costs.
Tech-enabled solutions will not only improve the customer experience but will change the fast-food industry as we know it.
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Like so many other sectors, the restaurant industry continues to face a severe labor shortage.
The November 2021 jobs report found that employment in the leisure and hospitality sector was down by 1.3 million, or 7.9%, since February 2020—bad enough to prompt U.S. Labor Secretary Martin Walsh to admit he saw “room for improvement” in the industry.
But there’s no simple solution: A rising federal minimum wage, the option of the gig economy, a pandemic, and new attitudes about work and employment, have made it nearly impossible for restaurants to retain employees.
But for fast food restaurants, there appears to be a solution—albeit a controversial one—to bypass the worker shortage: remove workers from the equation altogether. Indeed, the industry appears to be on the cusp of a transition towards automation, and Los Angeles is situated at the center of the coming storm.
Wavemaker Labs is a Santa Monica-based incubator focused on automating the entire food industry supply chain “from seed to fork,” said Wavemaker founder and CEO Buck Jordan.
The company has focused on automating fast food and restaurant kitchens. It recently announced an ambitious robotics project with Nommi, which is working to create what’s basically a fully autonomous vending machine that dishes out Michelin-star-quality grain bowls. It was also one of the early backers of Miso Robotics, a company that’s making robots that can run a fry station or a drink station in a fast-food restaurant
Los Angeles is an auspicious proving ground for these technologies.
“California, especially Southern California, is a restaurant hub,” said Jake Brewer, Miso’s Chief Strategy Officer. “You have Panda, you have Chipotle, you have Taco Bell, Del Taco. You have these big brands that are centered there.”
These business opportunities, in combination with a strong pipeline of talent from schools like Cal Tech, have allowed Wavemaker Labs to form partnerships and pilot programs.
“It’s where food and tech meet,” said Brewer. “The food creativity in LA is unlike anywhere else and the tech creativity is unlike anywhere else. If two people live together long enough they either become friends or they kill each other. In this instance they became friends.”
Miso Robotics
Miso Robotics has been operating since 2016, but the company has only recently begun testing their tech in the wild.
Miso has 15 robots deployed in restaurants across America and has inked pilot deals with 12 restaurant brands including Buffalo Wild Wings, CaliBurger, and Compass Levy. The plan, according to Brewer, is to have hundreds of robots operational by the end of next year, and thousands by the end of 2023.
Currently, Miso offers three different solutions for the quick service restaurant industry, all of which are designed to help with back of house operations. The first two are robots that can run different stations, specifically the deep fryers and the drink stations.
The robots, known as Flippy and Sippy, effectively replace workers at these stations and—according to Miso—offer improved efficiency. The third piece of technology is an AI-powered camera training platform that helps new hires understand how to assemble orders and run the back of house.
Miso recently started a pilot with White Castle in 2020 for their robotic fry cook. The bot basically operates the deep fryer and the grill in the back of house, which is one of the most demanding jobs with the highest turnover rate in the industry, lasting on average, less than one year and often less than 6 months.
White Castle, Brewer says, was an especially challenging partnership for the company due to the large number of fried items on the menu, the high volume of the restaurant, and the brand’s complex limited time offer schemes. Still, the robot earned its keep, and White Castle is looking to add more Flippy units to its stores in 2022.
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Nommi
Nommi represents an arguably more ambitious vision of the future of fast food. The idea behind Nommi is to make the kitchen fully autonomous. Humans still have to oversee operations or perhaps clean and maintain the machines, but the idea behind Nommi is basically to make a vending machine that serves hot, fresh meals.
The technology follows in the shoes of other kiosk-style operations developed by Wavemaker. The incubator has already dabbled in a pizza kiosk (Piestro) and an autonomous boba-tea maker (Bobacino), but Nommi is considerably more ambitious both in terms of scale and what it might ultimately mean for the future of the industry.
The prototype Nommi kitchen makes bowl-style meals—think noodles plus chicken or rice plus veggies. All of the cooking, chopping, seasoning etc. is handled by a series of robots and the ingredients are dispensed into a bowl atop a small autonomous cart and delivered to a person.
The project has drawn the backing of former Iron Chef Koumei Nakamura, and prototypes are currently in development. “He’s real serious about his food,” said Jordan, who, in addition to his role as Wavemaker’s CEO, is also CEO at Nommi. Jordan says that consumers can expect to see Nommi pilot programs “in the wild” as early as the end of next year, with production versions following another year after that.
Brewer says the pandemic initially depressed in-store fast food purchases by upwards of 70%, but delivery and takeout numbers went through the roof and have remained high ever since. If this trend is here to stay, Jordan thinks Nommi may represent the future model of fast food.
“In five to seven years, what I think you’re going to see is a lot of major brands starting to design their menus to be automated,” he said. “When you can fully automate a menu, all of a sudden your real estate costs get cut by two thirds or three quarters because you have a kitchen in a box. Your labor goes to almost nothing.”
While the pricing schemes haven’t been worked out yet, Jordan’s hoping Nommi can deliver high-quality food at fast-casual prices.
“We know that the economics are so good for the Nommi machine that we sort of 4x the profitability of a comparable restaurant that’s operating in analog,” he said. “We think that allows us to really deliver Michelin star quality at a really affordable price. I would love to offer a grain bowl for $7.”
What About the Workers?
An average McDonald’s franchise employs between 50 to 150 people. A fully autonomous kitchen will still need humans to clean and service the machines. People will be required to repair damaged equipment. Delivery men will still drive raw goods to the machines. Someone will likely need to oversee the whole operation.
But even still, making a kitchen autonomous represents the loss of dozens of jobs. “Is it going to be one job lost and one job gained here? I doubt it. There will be a shift,” said Jordan.
Mark Muro, who studies automation at the Brookings Institute, says the thing he’s most concerned about is the loss of entry level jobs.
“It’s not always clear how you get started in America’s economy,” he said. “But one thing there’s always been is working in a restaurant or low-end retail. That could be a serious problem for teenage and 20-something workers.”
He also points out that underrepresented groups, who’ve historically taken low paying, difficult jobs, may be disproportionately impacted by automation in the sector.
Conversely, automation holds tremendous promises for business owners and potentially for consumers as well if costs decrease and consistency and quality improve. These aren’t groundbreaking concepts, but they’re ones that the industry will be forced to confront if automation becomes widespread.
“I don’t think we’re going to uninvent these technologies,” said Muro. The best we can do, in his eyes, is to give workers fair warning that their jobs are on the chopping block and provide opportunities for them to retrain.
Likewise, Jordan believes automation is coming one way or another. He points to the development of the tractor and other technological advances which, in the past, put large numbers of laborers out of jobs, but ultimately created more agricultural industry overall.
“My first job was making pizza at Valley Pizza in Woodland Hills,” he said. “I don’t think my son, when he’s 18 years old, is going to have that job available to him.”
Correction: An earlier version of this post stated that Wavemaker had just finished a pilot with Miso. That project just began.
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